The excerpted article was written by SPECIAL TO THE GLOBE AND MAIL
If you get caught feeling the need for speed, your wallet will take a hit.
In provinces with privately-run insurance, that ticket could cost you anywhere from 5- to 100-per-cent more, but it depends on how many tickets you’ve had in the past three years.
“From an insurance company’s perspective, if you’re displaying risky behaviour, which is reflected in the number of tickets you have, you’re at a higher risk of being in a collision,” says Anne Marie Thomas, senior manager of partner relationships at Insurance Hotline, a rate-comparison site.
So how much could that ticket cost you?
Typically, an insurance company won’t increase your rate if you only have one ticket for going less than 15 km/h over the limit, Thomas says.
But your first ticket will cost you any discounts you had for being a conviction-free driver. Typically, those discounts are 5 to 10 per cent.
“You get one speeding ticket, and it’s bye-bye, discount,” Thomas says. “It will be gone when you renew, so it will look like you had an increase to your rates.”
If you were going more than than 15 km/h over the limit for that first ticket, your premium would go up another 15 per cent.
With the rate hike and the lost discount, that ticket for going 20 km/h over the limit could potentially cost you 25 per cent more every month. If you were paying $200 a month before, for instance, you’d now be paying $250.
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